David Frankel

One of the highest compliments we can pay to a founder is to call them a “heat-seeking missile.” It’s a sign of a talented entrepreneur who will find a way to market despite any obstacles.

@Broadlume founders, @toddsaunders and @danielppratt, have earned that title. The announcement of their acquisition by Cyncly validates it, but it was clear to those who met them in their early days.

Nearly ten years ago, they founded a company called AdHawk. Inspired by their ad sales work at Google, they believed they could help SMBs more intelligently purchase online advertising. It was a classic case of turning your job into a product.

This model worked, and they quickly built it into a $1M+ business with a diverse customer group. We were so impressed with their rapid growth that we invited Adhawk to present at our @fcollective annual LP meeting.

They happily did us this favor but also warned us they were pivoting. Their pitch resonated with flooring installers. AdHawk was growing nicely and had impressive prospects. However, Dan and Todd saw an even bigger opportunity focusing on flooring. Should they follow their entrepreneurial instincts and pursue this niche or stick with the million-dollar business they had built, serving diverse customers?

Todd and Dan decided flooring was the future. They redoubled their efforts, and we began describing them as the “Hubspot for Hardwood Flooring.” The increased clarity around their ideal customer profile allowed them to snowball, quickly recouping the revenue they lost when they off-boarded their non-flooring clients.

Sensing an opportunity to roll up the industry, they raised ~$60M from @PSG_equity to acquire a group of companies. Key acquisitions bought them technology and customers, but also a crew of executives who had been in the flooring industry for decades.

Many startups have fumbled when managing acquisitions, but Todd and Dan are consummate entrepreneurs and have made things work. Today, they’ve announced a nine-figure acquisition of the business, and I couldn’t have been prouder to be their first seed investor.

I don’t want to make this sound like it was a straight-line success story. Broadlume has struggled at times and this success hasn't come easily and it rarely does at startups!

Investing in the flooring industry isn’t something I had ever planned to do. I’ve likely written my last check related to vinyl tiles. However, the opportunity to work with people like Dan and Todd keeps me interested in investing even after two decades in the industry.

Entrepreneurship isn’t a job. It’s a personality trait that’s in short supply. Broadlume is a perfect case study of what’s possible when driven founders and open-minded funders work together.

My enormous Thank You to the incredible team and tremendous value add partners and collaborators on the @Broadlume journey including (but certainly not limited to): @toddsaunders @danielppratt, Sean Bave, Catherine Faber, @ralphfolz @aeyal1 @DaveBalter & Paul + Marco @PSG_equity